Wealthy Investors Set To Leave Market Ahead Of Polarized Election

Many wealthy investors are planning to reduce their exposure to the stock market depending on the outcome of the upcoming presidential election, and others are planning on exiting the market altogether. That's according to CNBC, citing a survey done by financial services giant UBS showing that 47 percent of millionaire American investors are considering reducing their stock allocations due to the election uncertainty. Additionally, 9 percent have already done so for this reason.

A full quarter of these investors, who have at least $1 million in investable assets, told UBS they will completely exit the stock market depending on the results of the election; 5 percent have already sold their stocks.

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"There is tremendous uncertainty about the election, but investors expect the winner to affect stock market returns in some way," said Sameer Aurora, head of client strategy at UBS Wealth Management Americas. "They're hoping for the best-case scenario, but some are already preparing their portfolios for the worst."

Not surprisingly, perhaps, the political landscape near the summit of the socioeconomic ladder closely resembles, too, the stark polarization seen across middle America this election cycle. Of the 1,912 investors surveyed by UBS, 34 percent were Republicans, 31 percent were independent and 27 percent were Democrats. So while future investment plans will largely be determined by whether or not their preferred candidate wins, there is no consensus about who that candidate might be.

While 61 percent of those included in the survey said that a victory by their preferred candidate would benefit the market, around 75 percent said that a win by the opposing candidate would have a negative impact on stocks. The survey also revealed a couple of other interesting points: two-thirds of these wealthy investors believe that America has lost its competitive edge, and 57 percent said that upward mobility had become more difficult in the U.S.